Request for Gas Rebate Program Refund – 2024
Summary
This proposal seeks approval from the UMA DAO to refund the Risk Labs Foundation for expenses incurred through the gas rebate program during 2024. Following the successful approval of last year’s refund request, which covered the period from September 2020 to December 2023, Risk Labs has continued supporting the UMA protocol by covering gas costs to incentivize community participation in voting. To ensure the sustainability of this rebate program and the broader UMA ecosystem, we request reimbursement for the gas rebates distributed throughout 2024.
Motivation
The gas rebate program has been instrumental in driving voter engagement, strengthening community involvement, and maintaining the security and integrity of the UMA protocol. Over the course of 2024, Risk Labs has disbursed a total of 184.235 ETH in gas rebates. These expenses have been affected by fluctuations in gas prices, ETH market movements, and increased community participation.
Given the ongoing importance of this program and its demonstrated impact on governance participation, Risk Labs believes it is essential to continue seeking reimbursement for these operational expenses to ensure the long-term adoption and growth of the UMA ecosystem.
Refund Calculation Methodology
The refund calculation follows the same methodology as the previously approved proposal:
- Gas rebates paid in UMA will be refunded in UMA tokens
- Gas rebates paid in ETH will be converted into UMA tokens based on the historical USD price of ETH and UMA on the day of the transaction
Based on this methodology, the total refund request for the period from January 2024 to December 2024 amounts to: 192,085.45 UMA tokens
Detailed Breakdown: Gas Rebate Program Report | Jan 2024 - Dec 2024
Request for Refund
In recognition of Risk Labs’ continued efforts in supporting UMA’s governance and community engagement, we request the UMA DAO to approve the refund of the operational expenses incurred through the gas rebate program for the year 2024.
While this program continues to play a vital role in incentivizing participation and securing the oracle, we also recognize the importance of ensuring its long-term sustainability. Risk Labs has recently introduced changes aimed at reducing the cost of this program and simplifying the experience for voters, as shared in this announcement. These changes reflect our ongoing commitment to improving the system and ultimately lowering the financial burden of rebates over time.
This reimbursement will allow Risk Labs to sustain its commitment to the UMA protocol and ensure the continuity of the rebate program while continuing to work toward more efficient and scalable solutions.
Voting
If the community supports this proposal, we will proceed with a snapshot vote with the following options:
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A YES vote approves the refund request, resulting in UMA refunding 192,085.45 UMA tokens to Risk Labs for the gas rebate expenses incurred in 2024.
A YES vote also signals an agreement to continue covering the gas rebate program’s expenses on a semi-annual or annual basis, based on the prices on the respective transaction dates, to Risk Labs’ multi-sig wallet:
0x8180D59b7175d4064bDFA8138A58e9baBFFdA44a -
A NO vote Rejects the proposal, potentially impacting the future of the gas rebate program unless a follow-up proposal is submitted to modify or renew it under different terms
We appreciate the community’s consideration and look forward to continued collaboration in fostering a robust and engaged UMA governance ecosystem.